Rupert Murdoch took his ball and went home after Time Warner refused to contemplate a deal that would have involved mashing together Fox News, CNN, HBO and some major movie studios.

21st Century Fox, led by CEO Rupert Murdoch, withdrew its offer to acquire Time Warner.

21st Century Fox withdrew its offer to acquire Time Warner for $75 billion. Time Warner's shares dropped by more than 10% in trading after the stock market closed Tuesday.

Fox offered to buy Time Warner for $85 a share on July 16, but Time Warner management refused to contemplate a deal that would have resulted in mashing together such TV properties as Fox News, HBO, and CNN, plus some major movie studios.

Within minutes after Fox said its offer was no longer on the table, Time Warner shares fell by 11% to about $75.75 a share, which is still higher than the $71-per-share price fetched before news of the Fox offer surfaced. Fox shares rose by 7%.

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If Time Warner in fact eludes Fox's grasp, it would represent the second major media property that Fox CEO Rupert Murdoch has coveted but couldn't acquire. Three years ago he was forced to abandon his quest for the 60% stake he didn’t already own in British broadcaster BSkyB amid political fallout from a phone-hacking scandal.

"Time Warner management and its board refused to engage with us to explore an offer which was highly compelling," Mr. Murdoch, 83, said in a statement Tuesday. "Additionally, the reaction in our share price since our proposal was made undervalues our stock and makes the transaction unattractive to Fox shareholders. These factors, coupled with our commitment to be both disciplined in our approach to the combination and focused on delivering value for the Fox shareholders, has led us to withdraw our offer."